Our latest Current Issues in Pensions Financial Reporting newsletter details the key financial assumptions required for determining pension liabilities under the FRS102 (UK non-listed), IAS19 (EU listed) and ASC715 (US listed).
There are a number of considerations for company directors to take into account when setting these assumptions and for auditors in determining whether the assumptions are appropriate. This briefing sets out some of the technical issues relevant to those involved in the preparation and the audit of pension disclosures.
- discount rates are expected to be marginally lower than last year; although
- falls in inflation expectations will mitigate some of the increase in liabilities
- moving to the latest Continuous Mortality Investigation (CMI) 2017 mortality projection model also leads to a small reduction in liabilities